What is a Comparative Market Analysis?
In 2014 we expect the real estate market to gain momentum. Home equity has returned for a good percentage of homeowners and now these homeowners will be home sellers. Be mindful of pricing your home at "market value."
What is "market value?" It is the price or agreement a willing buyer and seller agree to at a given time. These sales are used by real estate agents and real estate appraisers to establish value. Ideally only the most recent sales are used. To get the most accurate estimate of how much you should list your property for, your real estate agent can provide you with a Comparative Market Analysis (CMA).
A Comparative Market Analysis (CMA) is an informal estimate of market value based on sales of comparable properties in your neighborhood and surrounding homes.
Most realtors are happy to provide you with a Comparative Market Analysis (CMA) for free and will contain valuable information such as:
How long each property has stayed on the market?
How close to the sale price was the asking price?
Looking at notes of each home helps you to compare these homes to yours i.e.; number of bedrooms, number of bathrooms, approximate square footage, amenities such as a fireplace, pools, sunrooms, special features, and the age of the home.
A Comparative Market Analysis can also be used as a buying tool! Your real estate agent can do a CMA on the property you are considering purchasing to make sure you offer the right price!